Q3 2024 Crane NXT Co Earnings Call Transcript
Key Points
- Crane NXT Co (CXT) reported a 14% year-over-year increase in sales, reaching approximately $400 million, with core sales growth of 5% excluding the OpSec acquisition.
- The company announced two strategic acquisitions: De La Rue Authentication Solutions and TruTag’s Smart Packaging technology, which are expected to drive future growth and shareholder value.
- Crane NXT Co successfully integrated OpSec, achieving operational improvements in manufacturing and back-office processes.
- The company published its first ESG report, highlighting its commitment to philanthropy, sustainability, and good governance.
- Crane NXT Co repaid approximately $65 million of outstanding debt, ending the quarter with a net leverage of approximately 1.7 times, demonstrating strong financial management.
- The gaming segment underperformed expectations, with order rates not accelerating as anticipated, impacting overall revenue growth.
- Adjusted segment operating margin was diluted by the OpSec acquisition and an unfavorable product mix, reflecting challenges in maintaining profitability.
- The company lowered its adjusted free cash flow conversion guidance to approximately 70% due to the timing of international currency shipments.
- Crane NXT Co expects a double-digit decline in US currency volume in 2025, driven by the Federal Reserve's anticipated orders, impacting future revenue.
- The company anticipates flat revenue growth for 2025, indicating potential challenges in achieving organic growth across its segments.
Good day, and thank you for standing by. Welcome to the Crane NXT Q3 2024 earnings call. (Operator Instructions)
Please be advised that today's conference is being recorded. I would now like to turn the conference over to your first speaker today, Christina Cristiano, CFO. Please go ahead.
Thank you, operator, and good morning, everyone. I want to welcome you all to the third-quarter 2024 earnings call for Crane NXT. Before we begin, let me remind you that the slides we will reference during this presentation can be accessed via the investor relations section of our website at cranenxt.com and a replay of today's call will also be available on our website.
Before we discuss our results, I encourage all participants to review the legal notice on slide 2, which explains the risks of forward-looking statements and the use of non-GAAP financial measures. Additionally, we refer you to the cautionary language at the bottom of our earnings release and in our Form 10-K
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